Japan Market Daily | Kabutaro & Friends

On June 5, 2026, the Nikkei 225 extended its losses sharply, closing down 882.57 yen at 66,588.12 yen. Following the previous day's decline in semiconductor shares on Wall Street, heavy selling flooded the Tokyo market, particularly hitting heavyweight tech stocks like Tokyo Electron and Adventest, briefly dragging the benchmark index down by over 1,600 yen to breach the 66,000 threshold. Geopolitically, while a renewed ceasefire agreement between Israel and Lebanon pushed crude oil futures lower and eased inflation fears, a cautious sentiment persisted as Hezbollah vowed to continue strikes and U.S.-Iran tensions simmered. In the FX market, the USD/JPY cross traded within an extremely narrow range between 159.90 and 160.02 yen, as market participants held back from making bold moves ahead of the highly anticipated U.S. non-farm payrolls data scheduled for release later in the evening.